ProfBob DeSlob Writes a Check on His Big Bank Checking

question 17

Multiple Choice

Prof.Bob DeSlob writes a check on his Big Bank checking account for $1 payable to "Department of Business Law Coffee Club" to pay for his weekly membership and gives it to his colleague Carol.Bob does not place a decimal point after the "1" nor does he complete the line ending in "dollars." Carol,knowing that Bob can well afford it,prints in block letters the words "One Hundred" on the line ending in "dollars." Carol then gives the check to Dot,the Department secretary who is in charge of the Coffee Club.Dot presents the check to Big Bank for payment,and Big Bank charges $100 from Bob's account.Which of the following statements is most accurate?

• A) Bob's account must be recredited $99.
• B) Bob's account must be recredited $100.
• C) Bob contributed to the alteration and may be barred from claiming forgery.
• D) Bob had a duty to place a stop-payment order on the check.

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Definitions:

Federal Withholding

Taxes that an employer withholds from an employee's salary or wages, paid directly to the government as prepayment of the employee's tax liability.

Sales Salaries

Expenses associated with paying the salaries of sales personnel, typically classified under operating expenses in the income statement.

Medical Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses incurred from illness or injury, or reimburses the insured for expenses incurred from such incidents.

Unemployment Taxes

Taxes imposed on employers, based on the amount of wages paid to employees, used to fund unemployment compensation programs.